HOUSE BILL NO. 388
INTRODUCED BY A. NOONAN
A BILL FOR AN ACT ENTITLED: "AN ACT TRANSFERRING FUNDS TO THE ENVIRONMENTAL CONTINGENCY ACCOUNT FROM THE GENERAL FUND AND THE RECLAMATION AND DEVELOPMENT GRANTS SPECIAL REVENUE ACCOUNT; INCREASING THE ALLOCATION TO THE ENVIRONMENTAL CONTINGENCY ACCOUNT FROM THE RESOURCE INDEMNITY TRUST FUND; AUTHORIZING EXPENDITURES FROM THE ENVIRONMENTAL CONTINGENCY ACCOUNT FOR RESTORATION AND REMEDIATION; ALLOWING A STATE AGENCY LIABLE FOR REMEDIAL ACTION COSTS TO BE REIMBURSED FROM THE ORPHAN SHARE ACCOUNT; AMENDING SECTIONS 15-38-202, 75-1-1101, AND 75-10-743, MCA; AND PROVIDING AN EFFECTIVE DATE AND AN APPLICABILITY DATE."
WHEREAS, the Montana Legislature recognizes a compelling need to accelerate the restoration and remediation of Montana's natural environment damaged by natural disasters and human activities; and
WHEREAS, the restoration and remediation of Montana's natural environment improves the quality of life for this and future generations; and
WHEREAS, restoration and remediation activities create good-paying jobs and increase the ability of communities to promote economic growth; and
WHEREAS, large, functioning ecosystems, healthy fish and wildlife populations, and public access to natural landscapes are significant contributing factors to Montana's present and future economic well-being; and
WHEREAS, recent fire seasons have demonstrated a compelling state need to enhance the amount of funding available for fire restoration activities; and
WHEREAS, there is a clear and demonstrated need to change the state orphan share account to allow for greater use of these funds for the benefit of the people of Montana.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
NEW SECTION. Section 1. Fund transfers. (1) The department of administration shall transfer $1 million in fiscal year 2008 and $1 million in fiscal year 2009 from the general fund to the environmental contingency account provided for in 75-1-1101.
(2) The department of natural resources and conservation shall transfer $475,000 in fiscal year 2008 and $1 million in fiscal year 2009 from the reclamation and development grants special revenue account provided for in 90-2-1104 to the environmental contingency account provided for in 75-1-1101.
Section 2. Section 15-38-202, MCA, is amended to read:
"15-38-202. (Temporary) Investment of resource indemnity trust fund -- expenditure -- minimum balance. (1) All money paid into the resource indemnity trust fund must be invested at the discretion of the board of investments. Only the net earnings, excluding unrealized gains and losses, may be appropriated and expended until the fund balance, excluding unrealized gains and losses, reaches $100 million. After the fund balance reaches $100 million, all net earnings, excluding unrealized gains and losses, and all receipts may be appropriated by the legislature and expended, provided that the fund balance, excluding unrealized gains and losses, may never be less than $100 million.
(2) (a) At the beginning of each fiscal year, there is allocated from the interest income of the resource indemnity trust fund:
(i) $240,000, which is statutorily appropriated, as provided in 17-7-502, to be deposited into the renewable resource grant and loan program state special revenue account to support the operations of the environmental science-water quality instructional programs at Montana state university-northern, to be used for support costs, for matching funds necessary to attract additional funds to further expand statewide impact, and for enhancement of the facilities related to the programs. Any amount of the appropriation in this subsection (2)(a)(i) that is not pledged to repay bonds issued prior to January 1, 1999, may be deposited in a permanent fund account, the income from which may be used for the purposes provided in this subsection.
(ii) $2 million to be deposited into the renewable resource grant and loan program state special revenue account, created by 85-1-604, for the purpose of making grants;
(iii) for the fiscal year beginning July 1, 2002, through the fiscal year ending June 30, 2005, $1.2 million and for fiscal years beginning on or after July 1, 2005, $1.5 million to be deposited into the reclamation and development grants special revenue account, created by 90-2-1104, for the purpose of making grants;
(iv) $175,000 to the environmental contingency account created by 75-1-1101;
(iv)(v) $300,000 to be deposited into the ground water assessment account created by 85-2-905; and
(v)(vi) for the fiscal year beginning July 1, 2002, through the fiscal year ending June 30, 2005, $350,000 and for fiscal years beginning on or after July 1, 2005, $500,000 to the department of fish, wildlife, and parks for the purposes of 87-1-283. The future fisheries review panel shall approve and fund qualified mineral reclamation projects before other types of qualified projects.
(b) At the beginning of each biennium, there is allocated from the interest income of the resource indemnity trust fund:
(i) an amount not to exceed $175,000 to the environmental contingency account pursuant to the conditions of 75-1-1101;
(ii)(i) an amount not to exceed $50,000 to the oil and gas production damage mitigation account pursuant to the conditions of 82-11-161; and
(iii)(ii) $500,000 to be deposited into the water storage state special revenue account created by 85-1-631.
(c) The remainder of the interest income is allocated as follows:
(i) For the fiscal year beginning July 1, 2002, through the fiscal year ending June 30, 2005, 25.5% and for fiscal years beginning on or after July 1, 2005, 30% of the interest income of the resource indemnity trust fund must be allocated to the renewable resource grant and loan program state special revenue account created by 85-1-604.
(ii) For the fiscal year beginning July 1, 2002, through the fiscal year ending June 30, 2005, 22% and for fiscal years beginning on or after July 1, 2005, 26% of the interest income of the resource indemnity trust fund must be allocated to the hazardous waste/CERCLA special revenue account provided for in 75-10-621.
(iii) For the fiscal year beginning July 1, 2002, through the fiscal year ending June 30, 2005, 45% and for fiscal years beginning on or after July 1, 2005, 35% of the interest income from the resource indemnity trust fund must be allocated to the reclamation and development grants account provided for in 90-2-1104.
(iv) For the fiscal year beginning July 1, 2002, through the fiscal year ending June 30, 2005, 7.5% and for fiscal years beginning on or after July 1, 2005, 9% of the interest income of the resource indemnity trust fund must be allocated to the environmental quality protection fund provided for in 75-10-704.
(3) Any formal budget document prepared by the legislature or the executive branch that proposes to appropriate funds other than as provided for by the allocations in subsection (2) must specify the amount of money from each allocation that is proposed to be diverted and the proposed use of the diverted funds. A formal budget document includes a printed and publicly distributed budget proposal or recommendation, an introduced bill, or a bill developed during the legislative appropriation process or otherwise during a legislative session. (Terminates July 1, 2009--sec. 9, Ch. 529, L. 1999.)
15-38-202. (Effective July 1, 2009) Investment of resource indemnity trust fund -- expenditure -- minimum balance. (1) All money paid into the resource indemnity trust fund must be invested at the discretion of the board of investments. Only the net earnings, excluding unrealized gains and losses, may be appropriated and expended until the fund balance, excluding unrealized gains and losses, reaches $100 million. After the fund balance reaches $100 million, all net earnings, excluding unrealized gains and losses, and all receipts may be appropriated by the legislature and expended, provided that the fund balance, excluding unrealized gains and losses, may never be less than $100 million.
(2) (a) At the beginning of each fiscal year, there is allocated from the interest income of the resource indemnity trust fund:
(i) $240,000, which is statutorily appropriated, as provided in 17-7-502, to be deposited into the renewable resource grant and loan program state special revenue account to support the operations of the environmental science-water quality instructional programs at Montana state university-northern, to be used for support costs, for matching funds necessary to attract additional funds to further expand statewide impact, and for enhancement of the facilities related to the programs. Any amount of the appropriation in this subsection (2)(a)(i) that is not pledged to repay bonds issued prior to January 1, 1999, may be deposited in a permanent fund account, the income from which may be used for the purposes provided in this subsection.
(ii) $2 million to be deposited into the renewable resource grant and loan program state special revenue account, created by 85-1-604, for the purpose of making grants;
(iii) $175,000 to the environmental contingency account created by 75-1-1101;
(iii)(iv) $1.5 million to be deposited into the reclamation and development grants special revenue account, created by 90-2-1104, for the purpose of making grants; and
(iv)(v) $300,000 to be deposited into the ground water assessment account created by 85-2-905.
(b) At the beginning of each biennium, there is allocated from the interest income of the resource indemnity trust fund:
(i) an amount not to exceed $175,000 to the environmental contingency account pursuant to the conditions of 75-1-1101;
(ii)(i) an amount not to exceed $50,000 to the oil and gas production damage mitigation account pursuant to the conditions of 82-11-161; and
(iii)(ii) $500,000 to be deposited into the water storage state special revenue account created by 85-1-631.
(c) The remainder of the interest income is allocated as follows:
(i) Thirty percent of the interest income of the resource indemnity trust fund must be allocated to the renewable resource grant and loan program state special revenue account created by 85-1-604.
(ii) Twenty-six percent of the interest income of the resource indemnity trust fund must be allocated to the hazardous waste/CERCLA special revenue account provided for in 75-10-621.
(iii) Thirty-five percent of the interest income from the resource indemnity trust fund must be allocated to the reclamation and development grants account provided for in 90-2-1104.
(iv) Nine percent of the interest income of the resource indemnity trust fund must be allocated to the environmental quality protection fund provided for in 75-10-704.
(3) Any formal budget document prepared by the legislature or the executive branch that proposes to appropriate funds other than as provided for by the allocations in subsection (2) must specify the amount of money from each allocation that is proposed to be diverted and the proposed use of the diverted funds. A formal budget document includes a printed and publicly distributed budget proposal or recommendation, an introduced bill, or a bill developed during the legislative appropriation process or otherwise during a legislative session. (Terminates June 30, 2014--sec. 5, Ch. 497, L. 1999.)
15-38-202. (Effective July 1, 2014) Investment of resource indemnity trust fund -- expenditure -- minimum balance. (1) All money paid into the resource indemnity trust fund must be invested at the discretion of the board of investments. Only the net earnings, excluding unrealized gains and losses, may be appropriated and expended until the fund balance, excluding unrealized gains and losses, reaches $100 million. After the fund balance reaches $100 million, all net earnings, excluding unrealized gains and losses, and all receipts may be appropriated by the legislature and expended, provided that the fund balance, excluding unrealized gains and losses, may never be less than $100 million.
(2) (a) At the beginning of each fiscal year, there is allocated from the interest income of the resource indemnity trust fund:
(i) $2 million to be deposited into the renewable resource grant and loan program state special revenue account, created by 85-1-604, for the purpose of making grants;
(ii) $175,000 to the environmental contingency account created by 75-1-1101;
(ii)(iii) $1.5 million to be deposited into the reclamation and development grants special revenue account, created by 90-2-1104, for the purpose of making grants; and
(iii)(iv) $300,000 to be deposited into the ground water assessment account created by 85-2-905.
(b) At the beginning of each biennium, there is allocated from the interest income of the resource indemnity trust fund:
(i) an amount not to exceed $175,000 to the environmental contingency account pursuant to the conditions of 75-1-1101;
(ii)(i) an amount not to exceed $50,000 to the oil and gas production damage mitigation account pursuant to the conditions of 82-11-161; and
(iii)(ii) $500,000 to be deposited into the water storage state special revenue account created by 85-1-631.
(c) The remainder of the interest income is allocated as follows:
(i) Thirty percent of the interest income of the resource indemnity trust fund must be allocated to the renewable resource grant and loan program state special revenue account created by 85-1-604.
(ii) Twenty-six percent of the interest income of the resource indemnity trust fund must be allocated to the hazardous waste/CERCLA special revenue account provided for in 75-10-621.
(iii) Thirty-five percent of the interest income from the resource indemnity trust fund must be allocated to the reclamation and development grants account provided for in 90-2-1104.
(iv) Nine percent of the interest income of the resource indemnity trust fund must be allocated to the environmental quality protection fund provided for in 75-10-704.
(3) Any formal budget document prepared by the legislature or the executive branch that proposes to appropriate funds other than as provided for by the allocations in subsection (2) must specify the amount of money from each allocation that is proposed to be diverted and the proposed use of the diverted funds. A formal budget document includes a printed and publicly distributed budget proposal or recommendation, an introduced bill, or a bill developed during the legislative appropriation process or otherwise during a legislative session."
Section 3. Section 75-1-1101, MCA, is amended to read:
"75-1-1101. Environmental contingency account objectives. (1) There is an environmental contingency account within the state special revenue fund established in 17-2-102. The environmental contingency account is controlled by the governor.
(2) At the beginning of each biennium fiscal year, $175,000 must be allocated to the environmental contingency account from the interest income of the resource indemnity trust fund with the following exceptions:
(a) if at the beginning of any biennium the unobligated cash balance in the environmental contingency account equals or exceeds $750,000, allocation may not be made; and
(b) if at the beginning of any biennium the unobligated cash balance in the environmental contingency account is less than $750,000, then an amount less than or equal to the difference between the unobligated cash balance and $750,000, but not to exceed $175,000, must be allocated to the environmental contingency account from the interest income of the resource indemnity trust fund.
(3) Funds are statutorily appropriated, as provided in 17-7-502, from the environmental contingency account upon the authorization of the governor to meet unanticipated public needs consistent with the following objectives:
(a) to support renewable resource development projects in communities that face an emergency or imminent need for the services or to prevent the physical failure of a project;
(b) to address imminent natural resource restoration and remediation needs that are anticipated to have significant adverse impacts to Montana's natural environment if not addressed in a timely manner;
(b)(c) to preserve vegetation, water, soil, fish, wildlife, or other renewable resources from an imminent physical threat or during an emergency, not including:
(i) natural disasters adequately covered by other funding sources; or
(ii) fire suppression;
(c)(d) to respond to an emergency or imminent threat to persons, property, or the environment caused by mineral development;
(d)(e) to respond to an emergency or imminent threat to persons, property, or the environment caused by a hazardous material; and
(e)(f) to fund the environmental quality protection fund provided for in 75-10-704 or to take other necessary actions, including the construction of facilities, to respond to actual or potential threats to persons, property, or the environment caused by hazardous wastes or other hazardous materials.
(4) Interest from funds in the environmental contingency account accrues to the general fund.
(5) The governor shall submit, as a part of the information required by 17-7-111, a complete financial report on the environmental contingency account, including a description of all expenditures made since the preceding report."
Section 4. Section 75-10-743, MCA, is amended to read:
"75-10-743. Orphan share state special revenue account -- reimbursement of claims -- payment of department costs. (1) There is an orphan share account in the state special revenue fund established in 17-2-102 that is to be administered by the department. Money in the account is available to the department by appropriation and, except as provided in subsections (9) through (11), must be used to reimburse remedial action costs claimed pursuant to 75-10-742 through 75-10-751 and to pay costs incurred by the department in defending the orphan share.
(2) There must be deposited in the orphan share account:
(a) all penalties assessed pursuant to 75-10-750(12);
(b) funds received from the interest income of the resource indemnity trust fund pursuant to 15-38-202;
(c) funds allocated from the resource indemnity and ground water assessment tax proceeds provided for in 15-38-106;
(d) funds received from the distribution of oil and natural gas production taxes pursuant to 15-36-331;
(e) unencumbered funds remaining in the abandoned mines state special revenue account;
(f) interest income on the account;
(g) funds received from settlements pursuant to 75-10-719(7); and
(h) funds received from reimbursement of the department's orphan share defense costs pursuant to subsection (6).
(3) If the orphan share fund contains sufficient money, valid claims must be reimbursed subsequently in the order in which they were received by the department. If the orphan share fund does not contain sufficient money to reimburse claims for completed remedial actions, a reimbursement may not be made and the orphan share fund, the department, and the state are not liable for making any reimbursement for the costs. The department and the state are not liable for any penalties if the orphan share fund does not contain sufficient money to reimburse claims, and interest may not accrue on outstanding claims.
(4) Except as provided in subsection subsections (6) and (7), claims may not be submitted and remedial action costs may not be reimbursed from the orphan share fund until all remedial actions, except for operation and maintenance, are completed at a facility.
(5) Reimbursement Except as provided in subsection (6), reimbursement from the orphan share fund must be limited to actual documented remedial action costs incurred after the date of a petition provided for in 75-10-745. Reimbursement may not be made for attorney fees, legal costs, or operation and maintenance costs.
(6) (a) The department's costs incurred in defending the orphan share must be paid by the persons participating in the allocation under 75-10-742 through 75-10-751 in proportion to their allocated shares. The orphan share fund is responsible for a portion of the department's costs incurred in defending the orphan share in proportion to the orphan share's allocated share, as follows:
(i) If sufficient funds are available in the orphan share fund, the department's costs incurred in defending the orphan share must be paid from the orphan share fund in proportion to the share of liability allocated to the orphan share.
(ii) If sufficient funds are not available in the orphan share fund, persons participating in the allocation under 75-10-742 through 75-10-751 shall pay all the orphan share's allocated share of the department's costs incurred in defending the orphan share in proportion to each person's allocated share of liability.
(b) A person who pays the orphan share's proportional share of costs has a claim against the orphan share fund and must be reimbursed as provided in subsection (3).
(c) A state agency that is liable for remedial action costs incurred has a claim against the orphan share fund and must be reimbursed as provided in subsection (3). The agency may submit a claim before or after remedial action is complete. Reimbursement is limited to actual documented remedial action costs. Reimbursement may not be made for attorney fees, legal costs, or operation and maintenance costs. The agency may be reimbursed only after:
(i) its liability has been determined pursuant to 75-10-742 through 75-10-751 or by a court of competent jurisdiction;
(ii) it has received a notice letter pursuant to 75-10-711; and
(iii) the department has approved the costs.
(d) If the department determines that persons noticed pursuant to 75-10-711 likely do not have the financial resources to conduct necessary remedial actions at a facility, the department may use the orphan share account to conduct the necessary remedial actions.
(7) If the lead liable person under 75-10-746 presents evidence to the department that the person cannot complete the remedial actions without partial reimbursement and that a delay in reimbursement will cause undue financial hardship on the person, the department may allow the submission of claims and may reimburse the claims prior to the completion of all remedial actions. A person is not eligible for early reimbursement unless the person is in substantial compliance with all department-approved remedial action plans.
(8) A person participating in the allocation process who received funds under the mixed funding pilot program provided for in sections 14 through 20, Chapter 584, Laws of 1995, may not claim or receive reimbursement from the orphan share fund for the amount of funds received under the mixed funding pilot program that are later attributed to the orphan share under the allocation process.
(9) For the biennium beginning July 1, 2005, and subject to the provisions of section 3, Chapter 355, Laws of 2005, the department may transfer funds from the orphan share fund to the environmental quality protection fund established in 75-10-704, the hazardous waste/CERCLA account established in 75-10-621, or both. The total amount transferred pursuant to this subsection may not exceed $600,000.
(10) (a) For the biennium beginning July 1, 2005, up to $1.25 million may be used by the department to pay the costs incurred by the department in contracting for evaluating the extent of contamination and formulating final remediation alternatives for releases at the Kalispell pole and timber, reliance refinery company, and Yale oil corporation facility complex. If the department spends less than $1.25 million for those purposes, the remaining funds must be spent for remediation of the facility complex. The department may not seek recovery of the $1.25 million from potentially liable persons.
(b) The money spent pursuant to subsection (10)(a) must be credited against the amount owed by the state agency in a judgment or settlement agreement for payment of the remedial action costs at the facility for which the money was spent.
(c) The department shall consult with the noticed potentially liable persons regarding contractor selection and determination of the scope of the work for contract tasks. The department shall also provide the noticed potentially liable persons with contract performance updates and shall consult with the noticed potentially liable persons regarding expenses and progress on contract tasks.
(d) The department shall contract for the compilation, assessment, and summarization of the existing data pertaining to the complex described in subsection (10)(a), for recommendations for and conducting of additional investigations and studies necessary to develop remediation alternatives, and for development and assessment of remediation alternatives.
(e) Unless the department is delayed by a challenge to a contracting action, multiple contractor selection processes, or other unanticipated circumstances, the activities authorized under subsection (10)(a) must meet the following schedule:
(i) Contracts for investigations and studies must be in place by August 31, 2005.
(ii) A summary of existing data must be prepared by December 31, 2005.
(iii) The contract or contract task order for investigations, studies, and development and evaluation of final remediation alternatives must be in place by April 30, 2006.
(iv) All intended field work must be completed by November 30, 2006, and to the extent that this field work indicates that followup is necessary, the followup field work must be completed as soon as possible or addressed in the report that must be submitted pursuant to subsection (10)(g).
(v) The contractor shall submit evaluations of the extent of contamination by October 31, 2006.
(vi) The contractor shall submit final remediation alternatives by July 31, 2007.
(f) The department shall report to the environmental quality council quarterly during calendar years 2005, 2006, and 2007 regarding the progress being made to meet the requirements of subsection (10)(e). The report must include information on expenditures.
(g) If investigations completed under this subsection (10) indicate the need for additional information or for pilot tests and other related remedial action process activities, the department shall prepare a report identifying the rationale and estimated costs for additional work and present it to the environmental quality council during the spring of 2007.
(h) The department shall provide to the environmental quality council copies of investigations and reports completed pursuant to subsection (10)(d).
(11) (a) Beginning in the fiscal year that commences July 1, 2005, the department shall transfer from the orphan share account to the long-term or perpetual water treatment permanent trust fund provided for in 82-4-367 $1.2 million in each fiscal year until the board of investments makes the certification pursuant to subsection (11)(b) of this section.
(b) (i) The board of investments shall monitor the long-term or perpetual water treatment permanent trust fund provided for in 82-4-367 to determine when the amount of money in the long-term or perpetual water treatment permanent trust fund will be sufficient, with future earnings, to provide a fund balance of $19.3 million on January 1, 2018.
(ii) When the board of investments makes the determination pursuant to subsection (11)(b)(i), the board of investments shall notify the department and certify to the department the amount of money, if any, that must be transferred during the fiscal year in which the board of investments makes its determination pursuant to subsection (11)(b)(i) in order to provide a fund balance of $19.3 million on January 1, 2018.
(iii) In the fiscal year that the board of investments makes its determination and notifies the department, the department shall transfer only the amount certified by the board of investments, if any, and may not make additional transfers during subsequent fiscal years."
NEW SECTION. Section 5. Effective date. [This act] is effective July 1, 2007.
NEW SECTION. Section 6. Applicability. [This act] applies to remedial action costs incurred by a state agency after [the effective date of this act].
- END -
Latest Version of HB 388 (HB0388.01)
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