_____________ bill NO. _____________

INTRODUCED BY _________________________________________________

By Request of the Revenue Interim Committee

A BILL FOR AN ACT ENTITLED: “AN ACT REPEALING THE CREDIT FOR INTEREST DIFFERENTIALS FOR LOANS MADE BY UTILITIES AND FINANCIAL INSTITUTIONS; AMENDING SECTIONS 15-32-101 AND 69-3-1209, MCA; and REPEALING SECTIONS 15-32-107 AND 69-3-713, MCA.”

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Section 15-32-101, MCA, is amended to read:

"15-32-101. Purpose. The purpose of this part is to encourage the use of alternative energy sources and the conservation of energy through incentive programs. The incentives are to be made available to the energy user on a basis that requires the energy user to take the initiative in obtaining a particular incentive. This part allows but does not require a public utility to extend credit for energy conservation investments."

Section 2. Section 69-3-1209, MCA, is amended to read:

"69-3-1209. Electric utility demand-side management programs. (1) The commission may establish energy savings and peak demand reduction goals for an electric utility, taking into account the utility's cost-effective demand-side management potential and the need for electricity resources.

(2) The commission shall permit electric utilities to implement cost-effective electricity demand-side management programs and conservation in accordance with 69-3-701 through 69-3-713 69-3-712 and this part to reduce the need for additional resources.

(3) Every 3 years, an electric utility shall submit a report to the commission describing the demand-side management programs and conservation implemented by the electric utility in the previous year. The report must document:

(a) program expenditures, including incentive payments;

(b) peak demand and energy savings impacts and the techniques used to estimate those impacts;

(c) avoided costs and the techniques used to estimate those costs;

(d) the estimated cost-effectiveness of the programs;

(e) the net economic benefits of the programs; and

(f) any other information required by the commission."

NEW SECTION. Section 3. Repealer. The following sections of the Montana Code Annotated are repealed:

15-32-107.        Loans by utilities and financial institutions -- tax credit for interest differential for loans made prior to July 1, 1995.

69-3-713.          Prohibition against utility claiming conservation tax credit.