Energy and Climate Team Agenda

Date: March 11, 2021, 12:00 PM Location: ZOOM Webinar

Members: Chris Rowe, Jeremy Flesch, Trevor Bell, Michael Dorshorst, Brian Kerns, Scott McNall, Josh Nichols

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1. CALL TO ORDER

1.1. Roll Call

2. APPROVAL OF MINUTES

2.1. Minutes from the February 11, 2021 meeting.

3. ANNOUNCEMENTS

3.1. Youth Team Member introductions.

4. PUBLIC COMMENT ON ITEMS NOT LISTED ON THE AGENDA

5. ACTION ITEMS 5.1. Comments on the Draft Implementation Plan Memorandum of Understanding regarding Clean Energy Goals between the City of Missoula, Missoula County, and NorthWestern Energy.

6. NON-ACTION ITEMS

6.1. State Legislative update.

6.2. Process on the Team’s approach for legislative efforts.

6.3. Continued discussion on proposed housing projects and carbon neutrality goal.

6.4. Next steps for the Youth Team Member onboarding process.

6.5. Discussion of coordination priorities between the City’s Energy Conservation Program and the Energy & Climate Team.

6.6. Next steps on Federal Building proposal.

7. TEAM MEMBER COMMENTS

8. ADJOURNMENT

Energy and Climate Team Minutes DRAFT February 11, 2021, 12:00 PM ZOOM Webinar

Voting members present: Chris Rowe, Jeremy Flesch, Michael Dorshorst, Brian Kerns, Scott McNall, Josh Nichols, Trevor Bell

Alternate(s) present: David Morris

Alternate(s) absent: Amber Sherrill (City Council rep) (non-voting), Lee Hands

1. CALL TO ORDER

1.1 Roll Call

2. APPROVAL OF MINUTES

2.1 Minutes from December 10, 2020 Meeting

Approved as submitted.

2.2 Minutes from the January 14, 2021 Meeting

Approved as submitted.

3. ANNOUNCEMENTS

3.1 Green Tariff program update

Chris Rowe discussed the City's approval of the Green Tariff Program and described details of the program.

Michael Dorshorst said why he is excited about this program.

Brian Kerns said the University retained the same company for work the University is doing.

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Chris Rowe thinks maybe the team should bring them to a team meeting, requested Brain pass along their contact information.

David Morris asked if this program is different than the kinds of programs that already exist and gave an example of the program he has been a part of.

Chris Rowe clarified the difference between the two.

3.2 Youth Team Member program

Chris Rowe discussed the interviews for youth members the Parks and Conversation Committee meeting held yesterday. He provided a summary of the applicants and what the Council discussed, highlighting that they could appoint two regular members and appoint the other 2 applicants to alternates, and what their roles would be. He also mentioned the high level of support and excitement the City Council has for this youth member pilot program.

Michael Dorshorst said it's wonderful we are finally at the point of appointing youth.

Jeremy Flesch said he was very impressed with the level of knowledge and interest from the students. He believes the issue of climate change is on the forefront of young peoples minds.

Chris Rowe mentioned the new administration labeled climate change and their number one issue overall.

4. PUBLIC COMMENT ON ITEMS NOT LISTED ON THE AGENDA

Seeing none.

5. ACTION ITEMS

5.1 Consider support for SB 7

Chris Rowe asked Jeremy and Michael to share what they've learned in their research on SB 7.

Jeremy Flesch reviewed what the details of this bill and they recommend supporting this bill. Mentioned the City is supporting this bill as well and what that means.

Scott McNall thinks it's great this is being moved forward and that lobbyist will work on behalf of the City. He said this Team is supposed to educate the community and asked what their role should be.

Michael Dorshorst mentioned that what Scott brought up has been one of their long term goals and supports moving forward with education efforts.

Trevor Bell agreed about moving forward with education efforts and mentioned that incentivizing activities is effective in making change, such as tax credits.

Brian Kerns found the pamphlet from the Greenhouse Gas Team that they could update, said it has a list of things community members can do.

Jeremy Flesch thinks the challenge with education is what is the best medium to choose and they should strive to meet people where they are in energy conservation efforts.

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Michael Dorshorst thinks a PSA announcement could be a good idea, with monthly updates from the Team.

Jeremy Flesch said updating the Teams website could be a good idea. He mentioned that every house is different, so one recommendation or activity won't work for everyone.

Chris Rowe agreed and mentioned this bill is directed at a specific type of household. He thinks the list that Scott mentioned is most applicable to households that are in the greatest need of energy efficiency ideas.

Brian Kerns mentioned that the pamphlet mentions a free energy audit and Northwest Energy used to do this. But this would help homes identify solutions.

Chris Rowe said Northwestern still does energy audits, but he doesn't think it's easy to access. He thinks it's a good idea to update this list.

David Morris asked about the Teams avenues for public education.

Chris Rowe said this has been a discussion with the Team for a while.

Jeremy Flesch said they have talked about a PSA with MCAT before and speculated about what else could work regarding content and design.

Chris Rowe added they need to identify who their target audience is and design accordingly. He mentioned in addition to MCAT, they could reach out to Climate Smart Missoula and Missoula Utilities department to partner with outreach.

Scott McNall expressed concerns about possibly frustration from the youth because they want to take action now, so perhaps they could develop a YouTube piece.

Michael Dorshorst had the same idea as Scott.

Chris Rowe said they will revisit these items when the youth members are present. He recommended passing a resolution of support of SB 7 would be of value.

Jeremy Flesch offered to draft the resolution and pass along for review.

Chris Rowe said once it is final, they will work on a distribution list.

Moved by: Chris Rowe Seconded by: Jeremy Flesch

AYES: (7): Chris Rowe, Jeremy Flesch, Michael Dorshorst, Brian Kerns, Scott McNall, Josh Nichols, and Trevor Bell

Vote results: Approved (7 to 0)

5.2 Establish process for follow-up on Team approach to legislative approach

Chris Rowe mentioned hoping Amber Sherrill would be able to attend to assist the Team with this item. Discussed his thoughts on establishing this process and what avenues are available to the Team.

Jeremy Flesch stated the 3 options they have as a Team and what his recommendations are.

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Chris Rowe discussed their public outreach effort, but he isn't sure how to reach out to the Legislature. Asked if any member has done that work before.

Jeremy Flesch mentioned a webinar that advises on how to participate in the Legislative session and also talks about what is in the Legislature currently.

Chris Rowe mentioned the options individual have to get involved.

Josh Nichols mentioned if they should stay away from certain words because of the Teams by-laws. They have to frame things in a certain way.

Trevor Bell agreed as well and brainstormed how to move forward.

Chris Rowe agreed and speculated on how a non-partisan board, such as this, can address support for a bill.

Jeremy Flesch summarized his understanding of what he has heard so far and followed up with what they could do with that information/action item.

Chris Rowe said that is what they are trying to determine.

Scott McNall gave an example of a specific bill they believe they should support and how this type of bill worked in another State and discussed this with the Team.

Josh Nichols brought the conversation back to how the Team can take action and asked Chris is the City has specified how they want information from the Team.

Chris Rowe mentioned that Amber Sherrill is their main contact person that could answer this question. He thinks they should use SB 7 as their pilot project.

Brain Kerns said this is a discussion that keeps coming up and asked if they really have a role to play. He thinks maybe the Team should inform themselves and have a debrief at each team meeting as to what is going on, and that is all they do.

Trevor Bell mentioned that some of the education of energy efficiency is missing, so people misunderstand what the results of their efforts will be.

Chris Rowe gave information about the barriers in adopting renewable energy in Montana.

Jeremy Flesch stated his action items for the pilot project with SB 7 and asked if they should adopt a similar procedure for other bills?

Chris Rowe said that is his understanding as well. SB 7 is test case and they will adopt process after they see how that goes. He will meet with Amber before the next meeting for feedback and advice.

Due to needing guidance from Amber Sherrill, the Team decided this item will be referred to the March agenda.

6. NON-ACTION ITEMS

6.1 State Legislative update

Jeremy Flesch provided a summary of the Legislative research he and Michael completed.

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Michael Dorshorst followed up with additional information about one of the bills.

Chris Rowe discussed the details of this bill and questioned certain aspects.

Jeremy Felsch acknowledged one positive aspect of this bill.

Michael Dorshorst wondered if it's even appropriate for the Team to have an opinion on this item.

Chris Rowe mentioned they should have a narrow focus on policy goals. He summarized their one action item, SB 7, and the other bills they should follow, and discussed details of the bills.

Jeremy Flesch said he and Michael will continue to track and provide another update at the next meeting.

6.2 Update on the cities Energy Conservation Program

Chris Rowe detailed the conversation he and Jeremy had with Montana James yesterday regarding this program and how they need to be proactive in working with Montana and her Team moving forward, and how Montana is working on filling Chase's position. . He will provide Montana an outline of what the Team was working on with Chase, so she can use to onboard the new person.

David Morris asked how that person from the City relates to this group and what direction that is going?

Chris Rowe said it's been a gray area since he's been part of the Team and doesn't really have an answer. He hopes that working with Montana will result in a plan for this person's involvement with the Team.

Jeremy Flesch mentioned they also discussed that the expertise of the Team isn't being fully utilized.

Brain Kerns provided some background of the group working with the Mayor's office and City Council.

6.3 County cryptocurrency permanent rezoning regulation update and next steps

Chris Rowe reviewed the Teams support of this regulation and summarized it's details. He sent their support to City and will be speaking to it later this afternoon at the County's presentation.

6.4 Continued discussion on proposed housing projects and carbon neutrality goal

Chris Rowe discussed that this item is very complicated due to various aspects and how this Team can participate.

David Morris said Climate Smart Missoula is thinking about this and trying to subsidize some of these projects though carbon offsets.

Brain Kerns recommended Homeward as a resource for this item, invite a representative to explain to the group how they do this work.

David Morris mentioned he knows several people at Homeward.

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Chris Rowe said maybe they are addressing something that's already been addressed and perhaps they don't need to duplicate efforts.

6.5 Next steps on Federal Building proposal

Chris Rowe said they are waiting on Amber Sherrill to pass their recommendation through the Parks and Conservation Committee for approval.

7. TEAM MEMBER COMMENTS

Jeremy Flesch mentioned that another Big Event will be held virtually on February 24 at 5pm. This is a follow up event from the Big Event Climate Smart Missoula held last year.

8. ADJOURNMENT

Chris Rowe adjourned the meeting at 2:07pm

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March 11, 2021

To whom it may concern,

Re: Comments on the Draft Implementation Plan Memorandum of Understanding regarding Clean Energy Goals between the City of Missoula, Missoula County, and NorthWestern Energy

The City of Missoula Energy and Climate Team are pleased to provide the following comments. The Energy & Climate Team aids in the community-wide education and communication of energy efficiency opportunities that minimize greenhouse gas generation, as well as advises City Council on energy and climate policy matters.

This draft Implementation Plan is a significant step in moving the City of Missoula, Missoula County, and NorthWestern Energy the goals established in the 100% clean electricity by 2030 Memorandum of Understanding.

Please consider the following comments as suggestive and are provided with the intent to improve the Implementation Plan. The Missoula Energy and Climate Team share the in the goals of the 100% clean electricity by 2030 Memorandum of Understanding.

In general the draft Implementation Plan moves between aspirational is prescriptive. Some of the work plans express goals and desired outcomes for the MOU signatories to work toward, but oddly some of the work plans define to details that may best be worked out through the project implementation. We think the goal of this implementation plan should follow the former is express goals and desired outcomes and include steps to success without forgoing opportunities to change as the process moves forward.

Below are comments that pertain to each of the five proposed work plans:

A. Develop Utility-Scale Renewable Energy through a Green Tariff 1. It appears that many of the terms of a Green Tariff seem to be already spelled out in the draft Implementation Plan. The Implementation Plan should be a place to outline generally what will be worked on moving forward. The approach in the draft Implementation Plan may be too prescriptive in nature. It is as if the Green Tariff has already been spelled out and the steps going forward just rubber stamp that approach. It would be more useful to put out in the Implementation Plan a set of goals that you wish to achieve. If steps to achieving those goals are included, they should be offered as suggestive, but not definitive. 2. The draft Implementation Plan states that “the green tariff may be available only to certain customer classes”. Based on research on other Green Tariff programs, this usually refers to only large commercial customers. As with the comment above on being too prescriptive, this assumes that small commercial and residential customers may have already been excluded from participating

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Page 7 of 18 in the plan. This assumption predisposes this draft Implementation Plan excludes the vast majority of the potential participants from the process. It is also worth noting that the limited number large commercial customers in Missoula and other Montana towns may result in only a handful of possible customers who can participate. 3. While only large commercial customers approach is inherent in the some of the early Green Tariff approaches, it is now clear that a tiered approach is eminently doable. This would include a separate approaches for large commercial, small commercial, government, and residential customers. a. In particular a 5-15 year term is not achievable for many small and residential customers. Consider using the large commercial customers to establish to program and demonstrate the programs viability, but then provide more reasonable terms, such as annual renewal, for the smaller customers. b. The tiered approach allows for more meaningful achievement of some of the stated goals in the MOU regarding clean energy goals such as the NWE goal of “Working together to provide safe, reliable and innovative energy solutions that create value for its customers, communities, employees, and investors”. This would also include achieving the goal “to equitably implement this Agreement in a manner that reduces barriers to participation, encourages ownership of a shared vision, and causes no extraordinary burden on any particular group…” 4. How would the signatories to the MOU work to determine anticipated participation? This is an important consideration in determining the likely success of the program. This determination will also help in deciding the size of the new utility-scale renewable energy project. As importantly, it may also dictate the cost of the program to customers and toward recuperating costs for NWE. Please consider adding a note about determine anticipated participation in the Discussion section.

B. Develop a Community-Scale Solar Project

1. We encourage the development of a community scale solar project. This will help to get the community engaged in renewable energy while meeting the goal of 100% clean electricity by 2030. 2. We encourage the MOU parties state in the draft Implementation Plan that that this project could end up resulting in additional community solar systems. While not a guarantee that subsequent system will be constructed, it would seem to be logical next step once this first community solar project is successfully implemented. 3. How will this community scale solar project work with the current NWE restrictions on the size of renewable energy projects. It seems that with this demonstration project, a possible parallel process would be to increase or eliminate the size restrictions on renewable energy projects in the NWE service area. 4. Who would develop and own this system? Does NWE plan on using a third party under contract to construct and own the system? Or will one or all three of the MOU parties own the system? The same question goes for what entity or entities would operate the system. 5. We suggest that construction of the community solar system could be phased to allow for community support to develop over time and get the most possible participation. 6. Largely the terms of a Community Scale Solar Project seem to be already spelled out in this Implementation Plan. The Implementation Plan should be a place to outline generally what will

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Page 8 of 18 be worked on moving forward. The approach in the draft Implementation Plan is already prescriptive in nature. It would be more useful to put out in the Implementation Plan a set of goals that you wish to achieve. Steps and critical issue should be included to ensure success in achieving those goals. 7. Given some of the constraints outlined in the Implementation Plan it appears that small commercial and residential customers may have be excluded from participating in the project. This may then exclude the vast majority of the potential participants from the process. 8. It is worth considering a tiered approach were the access is tiered to the size and financial capabilities of the potential customers. This would include separate approaches for large commercial, small commercial, government, and residential customers. a. In particular a 5-15 year term is not a achievable for many small and residential customers. Consider using the large commercial customers to establish to program and demonstrate the programs viability, but then provide more reasonable terms, such as annual renewal, for the smaller customers. b. The tiered approach allows for more meaningful achievement of some of the stated goals in the MOU Regarding Clean Energy Goals such as NWE goal of “Working together to provide safe, reliable and innovative energy solutions that create value for its customers, communities, employees, and investors”. This would also include achieving the goal of “…to equitably implement this Agreement in a manner that reduces barriers to participation, encourages ownership of a shared vision, and causes no extraordinary burden on any particular group…” 5. How would the signatories to the MOU work to determine anticipated participation? This is an important consideration in determining the likely success of the program. This determination will also help in determining the size of the new utility-scale renewable energy project. As importantly, it may also dictate the cost of the program to customers and toward recuperating costs for NWE. Please consider adding a note about determine anticipated participation in the Discussion section.

C. Revise Cost-Effectiveness Test for Demand-Side Management Programs

1. As stated in the Implementation Plan, “In Fall 2020, NorthWestern Energy formed a DSM Stakeholder Group to make recommendations on NorthWestern Energy’s electric DSM programs” the plan goes on to states that “As directed by the MPS, the Stakeholder Group will consider a variety of approaches, including revising the inputs to the TRC test and/or replacing the TRC test with the UCT”. How then is this work plan a result of the Memorandum of Understanding implementation process in support of the City and County’s goal of 100% clean electricity by 2030. In other words, this process was already a required NWE effort and by listing this process in the Implementation Plan, NWE is taking credit for a requirement. Consider revising the Implementation Plan to allow for a greater level of effort or somehow to go beyond the MPSC requirements. If that cannot be accomplished, consider removing this effort and replacing it with one that is a result of the MOU process. See items 2 and 3 below for possible additions to make this effort commensurate with the goals of the MOU. 2. As noted, the move away from a TRC approach should bring more value to the utility customers. The TRC is more restrictive than the UCT (aka the Program Administrator Cost Test). As a result, a program may have a positive UCT but still not pass the TRC. Because of the need to move to a

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Page 9 of 18 more societal cost-effectiveness test, NWE should commit to moving to UCT now. This makes more sense given current direction from the MPSC. The argument for the switch is already apparent and should not be the basis for the stakeholder process. The basis for the stakeholder process then is to get to work on developing recommendations for the implementation of the UCT. This would allow for a significant saving of time and effort for something that appears to already be a forgone conclusion. 3. The process for developing revised cost-effectiveness needs to explicitly look at the environmental cost avoidance savings related to greenhouse gases (GHGs) reduction. These energy saving goals would likely result in a UCT much higher then 1.0. The cost avoidance should also consider the Social Cost of Carbon, currently estimated at $51 per ton of CO2e. In addition, the UCT should include what cost saving are brought about by not needing to build new power systems including transmission cost. These are legitimate considerations to avoid CO2 emissions.

D. Develop a Time-Based Rate Pilot Program

1. Missoula City and County would be an excellent location to deploy and test a time-bases pilot proposal. The cost and energy saving related to this approach could be substantial. The longer- term implications to additional electricity capacity development could change the current NWE approach to developing new natural gas generating capacity. There is a challenge in getting the advanced metering infrastructure (AMI) infrastructure in place in a reasonable timeframe to allow for NWE and MPSC to make meaningful decisions on future sources and quantities of electricity. We encourage the rapid development of AMI in Missoula and other locations in order to make the most of this technology and subsequent knowledge. 2. A key to the success in using AMI in time-based rates impacts is public education. Utility customers access to meaningful information has tremendous implications to customer decision making. There needs to be close partner level cooperation between NWE and Missoula City and County to make this work. This also means that NWE needs to commit financial, technical, and educational resources. All three MOU partners have access to educational outreach resources such as Climate Smart Missoula. These resources must be a part of the AMI focused time base rates.

E. Develop an Electric Bus Charging Tariff

1. An electric bus charging tariff program should ultimately lead to a reduction in a cost to public transportation districts throughout the State. We encourage the continued efforts between Mountain Line, NWE and others. 2. In the short term however, it may be more useful to look at the non-coincident rate structure and how that impacts the public transportation districts. If NWE could provide a model or estimate of peak electricity cost charges, it seems like the public transportation districts could begin to implement a cost control effort now instead of waiting for a tariff structure to be implemented. This may also involve informing public transportation districts of their highest 15- minute usage each month in near real time. This information could be provided using the AMI discussed in the item D.

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Page 10 of 18 F. Establish a Streamlined Process for Energy Data Access

1. We agree in the usefulness of streamlined and standardized processes for local governments to access aggregate community-wide electricity and natural gas consumption data. The role-out of this type of data will allow the City and County to advance their energy conservation goals. 2. Is it possible to get monthly emissions factor for electricity supplied by NorthWestern Energy? The annual data is still especially useful, but a better understanding of electricity sources through the seasons could allow for more detailed targeting of conservation efforts.

Thank you for considering these comments. Please contact the Missoula Energy and Climate Team if you have any comments, questions, or requests for assistance.

Respectfully

Chris Rowe, Chair 303-517-5307, [email protected]

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Page 11 of 18 Top 9 - High Priority Bills (House and Senate) – 2021 * The City of Missoula is engaged in energy conservation and climate action-related commitments, projects, work, and planning as part of municipal operations. This includes the goal of 100% clean electricity for the Missoula urban area by 2030, the goal of carbon neutrality for City operations by 2025, and many others. The recommended position, as seen below, reflects these initiatives. Bill Number Short Bill Title Introduced By: Current Status Recomm- Description ended Position * SB 257 Prohibits Local , Active – In First Oppose This bill prevents a local government from enacting a policy that Governments from Busby House – Through 3rd includes fees, taxes etc. based upon carbon use. This bill also enacting fees, Reading does a number of things which seem to be aimed at Missoula taxes, penalties City and County. This includes the prohibition of a local regarding carbon government from exercising powers as it pertains to the right to use keep or bear arms, packaging and sale of commercial fertilizers, planting of agricultural seeds or vegetable seeds, amateur radio stations and powers regarding adult use marijuana-infused products. HB 576 Repeals the Jerry Schillinger, Active – Transmitted Oppose This bill repeals the Renewable Portfolio Standard (RPS). The renewable Circle to 2nd House RPS has been used to encourage jobs, agriculture and to build portfolio standard the rural tax base through the development and use of renewable energy. SB 201 Makes renewable , Active – Transmitted Oppose This bill would make it easier for an energy producer such as energy projects Great Falls to Second House NWE, to not purchase renewable electricity. Currently, NWE has more difficult to to consider ‘avoided costs’, including future regulation of carbon implement dioxide. This bill prohibits ‘avoided costs’ from being considered when calculating the costs of future electricity development. SB 237 Removes the CREP Douglas Kary, Active – Transmitted Oppose This bill removes the CREP (Community Renewable Energy Requirement from Billings to Second House Project) in Montana. CREP has helped to build renewable Montana’s energy projects and created jobs in the past. Renewable Renewable Energy energies include wind, solar, geothermal, hydro, landfill or farm- Standard based methane gas, gas produced from wastewater, nontoxic biomass and a variety of other renewable energies. This would rescind the need for Northwestern Energy (NWE) to pay a $2.5 Million dollar penalty to state and tribal low-income energy assistance programs. This penalty was set by a court after determining that NWE failed to comply with the renewable energy standard. HB 475 Revises renewable Derek Skees, Active – Through Oppose Allows utilities to include hydroelectricity as a renewable power power standard to Kalispell Second Reading source when calculating their renewable energy as it pertains to the Montana renewable energy standard. The Renewable Montana Legislature – Energy & Climate Bills – Revised on March 2, 2021 Page 1 of 7 Page 12 of 18 include Energy Standard was intended to incentivize energy producers hydropower to develop new renewable energy resources. This bill removes any incentive to develop renewable energy. HB 346 Revises Property Tom Welch, Active – In First Oppose This bill would double the tax rate on mid-sized solar projects. Tax Laws Related Dillon House – Out of This bill specifically focuses on solar energy projects between 50 to Solar Panels Committee and 80 megawatts, with 80 megawatts being the maximum size allowed under federal law. HB 359 Revise Net Larry Brewster, Active – In First Oppose This bill would damage the solar industry in Montana by Metering Rate Billings House Committee reducing the value of solar credits by approximately 70%. This Laws bill would also require the Montana PSC (Public Service Commission) to set the ‘avoided cost rate’ every two years. This indicates that all new and existing net metering customers (residential, small business, large businesses, schools and more) would have uncertainty about their energy bills as every two years the price set by the PSC could change. SB 176 Revise laws related , Active – In First Oppose Does a number of things including: to coal, coal tax Laurel House Committee - Each entity receiving money from the coal trust is required and coal-fired unit to sign a statement that they support the digging and remediation burning of coal. - Allows one owner who wants to continue running a plant (such as Colstrip) to force the other owners to continue to pay for maintenance of the plant. - Changes the cleanup and bonding processes at Colstrip. - Remediation and stranded costs must be paid for by shareholders and not customers. HB 407 Statewide Mark Noland, Big Active – In Second Oppose This bill would prohibit local governments from regulating food uniformity for Fork House Committee packaging and food containers. This works to prevent auxiliary communities from taking actions to move toward more containers sustainable containers for food.

Montana Legislature – Energy & Climate Bills – Revised on March 2, 2021 Page 2 of 7 Page 13 of 18 House Bills (Lower Priority) – Montana Legislature 2021 * The City of Missoula is engaged in energy conservation and climate action-related commitments, projects, work, and planning as part of municipal operations. This includes the goal of 100% clean electricity for the Missoula urban area by 2030, the goal of carbon neutrality for City operations by 2025, and many others. The recommended position, as seen below, reflects these initiatives. Bill Number Short Bill Title Introduced By: Current Status Recomm- Description ended Position * HB 170 Revise laws to Tom Welch, Active – In First Oppose Offers a disproportionately large tax break to companies include renewable Dillon House Committee employing even a small amount of green-sourced hydrogen in hydrogen 2/8/21 energy production.

HB 273 Eliminate Derek Skees, Active – Hearing on Oppose This bill would remove the public input requirement for the restrictions on Kalispell 2/8/21 siting of any new nuclear facilities. Overturns citizen-passed nuclear facility initiative regarding whether or not Montana pursues nuclear development energy.

Montana Legislature – Energy & Climate Bills – Revised on March 2, 2021 Page 3 of 7 Page 14 of 18 Senate Bills (Lower Priority) – Montana Legislature 2021 * The City of Missoula is engaged in energy conservation and climate action-related commitments, projects, work, and planning as part of municipal operations. This includes the goal of 100% clean electricity for the Missoula urban area by 2030, the goal of carbon neutrality for City operations by 2025, and many others. The recommended position, as seen below, reflects these initiatives. Bill Number Short Bill Title Introduced By: Current Status Recomm- Description ended Position * SB 84 Revises the , Active – In First Oppose This bill weakens the power of the Montana Consumer Counsel. legislative Colstrip House Committee on consumer cmte 1/26/21 SB 154 Revising the Jason Small, Active – Hearing on Oppose This bill would allow coal plants to be relieved of tax burdens collection of Busby 2/5/21 and place the onus on the local community to absorb. Tried last delinquent coal session and died. gross proceeds property taxes

Montana Legislature – Energy & Climate Bills – Revised on March 2, 2021 Page 4 of 7 Page 15 of 18

Likely Dead – Montana Legislature 2021 * The City of Missoula is engaged in energy conservation and climate action-related commitments, projects, work, and planning as part of municipal operations. This includes the goal of 100% clean electricity for the Missoula urban area by 2030, the goal of carbon neutrality for City operations by 2025, and many others. The recommended position, as seen below, reflects these initiatives. Bill Number Short Bill Title Introduced By: Current Status Recomm- Description ended Position * HB 17 Allow alternative Jim Hamilton, Tabled N/A Allowed for an alternative energy system tax credit may be energy tax to be Bozeman refunded if the amount of the tax credit exceeds the taxpayer's refunded tax liability.

HB 150 Establish a carbon Mary Ann Tabled N/A Establishes a carbon tax and limits emissions of carbon by cost on large Dunwell, Helena specified levels and dates. emission sources HB 99 Revise laws related Denise Hayman, Tabled N/A This bill revises electricity supply resource laws and to utility Bozeman eliminates preapproval of electricity supply. (At the preapproval current time, NWE can request the PSC to approve its purchase of an energy generating resource and pass all of the costs and risks on to consumers rather than shareholders holding the initial risk.) This bill changes that dynamic. HB 182 Revise laws related Laurie Bishop, Tabled Support This bill would change the amount of money that NWE can pass to utility deadband Livingston on to customers when actual costs exceed expected costs for a mechanisms new project. (Currently 90% can be passed on to customers and only 10% to shareholders.) This bill allows the Public Service Commission to determine how much over cost projections the shareholders pay compared to customers. This was tried and died in the last session. HB 245 Revise electricity Larry Brewster, Tabled Oppose This allows NWE new gas construction to be allowed unless supply resource Billings regulators can prove that it’s detrimental, rather than requiring procurement companies to prove that it’s helpful. approval This bill is essentially a dangerous paradigm shift from requiring companies to prove that something is helpful (for it to proceed) to requiring regulators to prove that it would be bad (to stop it from being developed).

Montana Legislature – Energy & Climate Bills – Revised on March 2, 2021 Page 5 of 7 Page 16 of 18 HB 265 Phase out Marilyn Marler, Tabled Support This bill would phase out the use of Styrofoam packaging in Styrofoam in food- Missoula food-related businesses between 2024 and 2026. related businesses 2024 – restaurants would need to stop using polystyrene to serve food and beverages 2025 – restaurants, resorts and hotels would need to stop using polystyrene for to-go boxes and pre-packaged food 2026 – food packaging plants would need to stop using polystyrene all together HB 414 Require utilities to N/A Tabled Support Require utilities to report a plan for 100% renewable energy. LC 1347 report a plan for 100% renewable

Montana Legislature – Energy & Climate Bills – Revised on March 2, 2021 Page 6 of 7 Page 17 of 18 No Strong Opinion – Montana Legislature 2021 * The City of Missoula is engaged in energy conservation and climate action-related commitments, projects, work, and planning as part of municipal operations. This includes the goal of 100% clean electricity for the Missoula urban area by 2030, the goal of carbon neutrality for City operations by 2025, and many others. The recommended position, as seen below, reflects these initiatives. Bill Number Short Bill Title Introduced By: Current Status Recomm- Description ended Position * SB 7 Tax Credit for , East Active – Revised No strong A resident individual taxpayer may take a credit against the Energy Helena Fiscal Note on opinion taxpayer's tax liability for 25% of the taxpayer's expenditure for Conservation 2/5/2021 a capital investment in the physical attributes of a building or the installation of a water, heating, or cooling system in the building, so long as either type of investment is for an energy conservation purpose, in an amount not to exceed $500 (was changed from $500 to $800 and back to $500). This legislation has been changed to apply only to homeowners with a family income below $45,000. This bill is still a good one, but the maximum family income is a bad amendment which greatly limits the function of the legislation. SB 147 Establish Mary McNally, Active – Hearing on No strong This bill would establish a Capital Enhancements program (C- commercial Billings 2/2/21 opinion PACE) that would be administered by local governments. Allows property assessed property owners to secure all of the upfront costs of financing capital for energy efficiency, water conservation and renewable energy enhancements upgrades for commercial properties. The property owners then program repay the upfront costs over a period of 20 years. This type of financing has been used for private property, such as water systems, sewer systems, sidewalks etc. HB 394 Exempting Certain Mark Noland, Active – Hearing Undecided This bill exempts property owned by cooperative rural electric Air and Water Bigfork scheduled for and telephone associations from tax laws when the property is Pollution Control 2/19/21 used for a variety of purposes including: air and water pollution and Carbon control, ethanol-blended gasoline, research and development, Capture from telecommunications services to small cities or towns (1,200 property taxation permanent residents or less) and a few other purposes. This bill could reduce or eliminate taxes in some situations for air and water pollution control. However, it also reduces or eliminates taxes for systems designed for carbon capture. Other broad generalizations in the bill may be specifically designed for specific industries. More research is needed.

Montana Legislature – Energy & Climate Bills – Revised on March 2, 2021 Page 7 of 7 Page 18 of 18