- 2025
69th Legislature 2025 HB 217
- 1 - Authorized Print Version – HB 217
ENROLLED BILL
AN ACT TRANSFERRING THE STATE BUILDING ENERGY CONSERVATION PROGRAM FROM THE
DEPARTMENT OF ENVIRONMENTAL QUALITY TO THE ARCHITECTURE AND ENGINEERING DIVISION
OF THE DEPARTMENT OF ADMINISTRATION; ALLOWING THE DEPARTMENT OF ENVIRONMENTAL
QUALITY TO RETAIN CERTAIN FEDERAL FUNDING; AMENDING SECTIONS 90-4-602, 90-4-605, 90-4-607,
90-4-615, 90-4-616, AND 90-4-617, MCA; AND PROVIDING AN EFFECTIVE DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 90-4-602, MCA, is amended to read:
"90-4-602. As used in this part, unless the context requires otherwise, the following
definitions apply:
(1) "Board" means the board of examiners provided for in 2-15-1007.
(2) "Cost" includes the expenses related to planning, design, construction, and installation of
energy conservation improvements and any administrative expenses of the department division incurred in the
performance of its duties under the energy conservation program.
(3) "Department" "Division" means the department of environmental quality architecture and
engineering division of the department of administration provided for in 2-15-3501 17-7-201.
(4) "Energy conservation program" means a program for the financing, acquisition, construction,
and installation of alternative energy systems, as defined in 15-32-102, or equipment, systems, and
improvements in state-owned buildings, structures, and facilities that save energy or water.
(5) "Energy conservation program bonds" includes all series of bonds issued to finance any portion
of the energy conservation program.
(6) "Energy cost savings" means the savings in utility costs to a state agency as a result of an
energy conservation program. - 2025
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(7) "Participating state agency" means, for a state-owned building, structure, or facility, the state
agency that pays for the utilities for that building.
(8) "State agency" means:
(a) each executive, legislative, or judicial branch department, office, or agency;
(b) the university system; and
(c) a community college district."
Section 2. Section 90-4-605, MCA, is amended to read:
"90-4-605. (1) The department division shall identify
buildings that have a potential for energy savings, based on age, energy use, function, and condition of the
building. Upon On request of the department division, a state agency shall provide the department division with
information necessary to allow the department division to comply with this requirement.
(2) Based on the criteria in subsection (1) and on the feasibility of leveraging other funds, such as
federal and utility energy conservation program money, the department division shall select certain facilities for
indepth energy analyses to identify the technical and financial feasibility of making energy conservation
improvements to the facilities.
(3) (a) Upon On completion of the energy analyses, the department division shall identify
estimated costs and savings to the state based on these analyses.
(b) The department division shall notify the department of administration of identify each project for
which:
(i) for projects to be funded with bond proceeds, the estimated savings are determined to be
greater than the bond payment costs; and
(ii) for projects to be funded from the general fund or the energy conservation capital projects
account, the estimated savings are determined to be greater than the cost of the project plus annual interest
payments of 3% of the unpaid balance of the cost of the project.
(c) Upon receipt of the notification, the department of administration The division shall implement a
design and construction project using bond proceeds or funds from the general fund or the energy conservation
capital projects account established in 90-4-617 for the costs of the project. - 2025
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(4) The department division shall compile a report that must include the following:
(a) a listing of contacts between the department division and other state agencies;
(b) a summary of the department's division's review of agency requests and a selection of projects
for indepth analysis;
(c) a summary of the energy analyses conducted by the department division, including the
estimated cost of each proposed project and the estimated energy cost savings of each proposed project; and
(d) a listing of additional projects under consideration, for which energy analyses have not been
conducted.
(5) The department division shall submit the report required by subsection (4) to the governor
before September 1 of each even-numbered year."
Section 3. Section 90-4-607, MCA, is amended to read:
"90-4-607. In addition to the duties set forth in 90-4-605, the
department division is authorized to:
(1) analyze state utility data to identify high-potential energy conservation projects;
(2) perform comprehensive energy analyses on state-owned buildings, structures, and facilities,
contracting with private engineers when necessary;
(3) transfer funds and authority to the department of administration to:
(a)(3) procure design and construction of cost-effective energy improvements; and
(b)(4) transfer funds and authority to other agencies to procure, design, and construct cost-effective
energy improvements; and
(4)(5) train facility maintenance staff in energy saving techniques and maintenance of energy
improvements and monitor energy conservation projects to ensure that cost savings are realized and are
adequate to cover the debt service if bonds have been issued to fund the improvements."
Section 4. Section 90-4-615, MCA, is amended to read:
"90-4-615. (1) There is an energy conservation
repayment account in the state special revenue fund established in 17-2-102. - 2025
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(2) There must be deposited in the energy conservation repayment account:
(a) the amount of energy costs saved as a result of energy conservation projects in state buildings,
facilities, or structures using appropriations from the energy conservation capital projects account or the general
fund for the energy conservation program;
(b) interest earned on the account;
(c) interest earned on the energy conservation capital projects account created in 90-4-617; and
(d) funds transferred to the account by the legislature.
(3) Money in the energy conservation repayment account is available to the department of
environmental quality division by appropriation to fund the costs of the energy conservation program for:
(a) conducting energy analysis;
(b) data collection and analysis;
(c) program administration and oversight; and
(d) monitoring the results of state building energy conservation projects.
(4) If the unencumbered funds in the account at the end of a biennium exceed $2 million, the
department division shall transfer to the energy conservation capital projects account the amount of funds in
excess of $2 million."
Section 5. Section 90-4-616, MCA, is amended to read:
"90-4-616. (1) In preparing the executive budget each
biennium, for each state agency participating in the energy conservation program by using appropriations from
the general fund or the energy conservation capital projects account created in 90-4-617, the governor shall
include an estimate of the energy cost savings expected for that agency in each year of the biennium.
(2) Each session, the legislature shall review the governor's submission pursuant to 90-4-606 and
subsection (1) of this section and, unless the legislature disapproves, shall include in the general appropriations
act authority for each participating state agency, subject to [section 6], to transfer funds in an amount equal to
the agency's estimated energy cost savings to the energy conservation repayment account established in 90-4-
615. Except as provided in [section 6], These these transfers must continue until the cost of the project,
including energy analysis, acquisition and installation costs of energy saving equipment or systems, and the - 2025
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cost of the construction of improvements in state buildings, facilities, or structures, plus annual interest
payments of 3% of the unpaid balance of the cost of the project, has been paid into the energy conservation
repayment account.
(3) The current level utility appropriations of state agencies participating in the energy conservation
program must be reduced by the sum of the amounts approved to be transferred pursuant to subsection (2).
(4) Upon On request of the department division, each participating state agency shall transfer the
amounts approved pursuant to subsection (2)."
Section 6. (1) The department of environmental quality shall
retain federal American Recovery and Reinvestment Act funds allocated in accordance with Chapter 478, Laws
of 2009, to the state energy building conservation program, including:
(a) transfers after July 1, 2025, made by participating state agencies pursuant to 90-4-616 for the
unpaid balance of projects funded with federal American Recovery and Reinvestment Act funds;
(b) interest payments pursuant to 90-4-616 on projects funded with federal American Recovery
and Reinvestment Act funds; and
(c) interest earned on short-term investment pool investments of federal American Recovery and
Reinvestment Act funds.
(2) The department of environmental quality may use the funds for activities consistent with
applicable federal requirements and in accordance with guidance provided by the federal department of energy
for the repurposing of funds.
Section 7. Section 90-4-617, MCA, is amended to read:
"90-4-617. (1) There is an energy conservation
capital projects account in the capital projects fund type established in 17-2-102.
(2) There must be deposited in the account:
(a) money transferred from the energy conservation repayment account; and
(b) other amounts transferred to the account by the legislature.
(3) Money in the account is available to the department division by appropriation and must be used - 2025
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to pay the costs of the acquisition, installation, and construction of energy saving equipment, systems, or
improvements in state buildings, facilities, or structures."
Section 8. [Section 6] is intended to be codified as an integral part of Title
90, chapter 4, part 6, and the provisions of Title 90, chapter 4, part 6, apply to [section 6].
Section 9. If both House Bill No. 47 and [this act] are passed and
approved and if both contain a section that amends 90-4-605, then the sections amending 90-4-605 are void
and 90-4-605 must be amended as follows:
"90-4-605. (1) The department division shall identify
buildings or building systems that have a potential for energy savings, based on age, energy use, function, and
condition of the building. Upon On request of the department division, a state agency shall provide the
department division with information necessary to allow the department division to comply with this
requirement.
(2) Based on the criteria in subsection (1) and on the feasibility of leveraging other funds, such as
federal and utility energy conservation program money, the department division shall select certain facilities for
indepth in-depth energy analyses to identify the technical and financial feasibility of making energy conservation
improvements to the facilities.
(3) (a) Upon On completion of the energy analyses, the department division shall identify
estimated costs and savings to the state based on these analyses.
(b) The department division shall notify the department of administration of identify each project for
which:
(i) for projects to be funded with bond proceeds, the estimated savings are determined to be
greater than the bond payment costs; and
(ii) for projects to be funded from the general fund or the energy conservation capital projects
account, the estimated savings are determined to be greater than the cost of the project plus annual interest
payments of 3% of the unpaid balance of the cost of the project the estimated savings are determined to be
greater than the cost of the project plus annual interest payments on the unpaid balance of the cost of the - 2025
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project.
(c) Upon receipt of the notification, the department of administration The division shall implement a
design and construction project using bond proceeds or funds from the general fund or the energy conservation
capital projects account established in 90-4-617 for the costs of the project.
(4) The department division shall compile a report that must include the following:
(a) a listing of contacts between the department division and other state agencies;
(b) a summary of the department's division's review of agency requests and a selection of projects
for indepth in-depth analysis;
(c) a summary of the energy analyses conducted by the department division, including the
estimated cost of each proposed project and the estimated energy cost savings of each proposed project; and
(d) a listing of additional projects under consideration, for which energy analyses have not been
conducted.
(5) The department division shall submit the report required by subsection (4) to the governor
before September 1 of each even-numbered year.
(6) The division shall set the annual interest rate for projects funded by the energy conservation
program by July 1 of each year. The annual interest rate may not exceed 3%. The division may set the annual
interest rate to cover administrative costs of the program."
Section 10. If both House Bill No. 47 and [this act] are passed and
approved and if both contain a section that amends 90-4-607, then the sections amending 90-4-607 are void
and 90-4-607 must be amended as follows:
"90-4-607. In addition to the duties set forth in 90-4-605, the
department division is authorized to:
(1) analyze state utility data to identify high-potential energy conservation projects;
(2) perform comprehensive energy analyses on state-owned buildings, structures, and facilities,
contracting with private engineers when necessary;
(3) transfer funds and authority to the department of administration to:
(a)(3) procure, design, and construction of construct cost-effective energy improvements; and - 2025
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(b)(4) transfer funds and authority to other agencies to procure, design, and construct cost-effective
energy improvements; and
(4)(5) train facility maintenance staff in energy saving techniques and maintenance of energy
improvements and monitor energy conservation projects to ensure that cost savings are realized and are
adequate to cover the debt service if bonds have been issued to fund the improvements."
Section 11. [This act] is effective July 1, 2025.
- END - I hereby certify that the within bill,
HB 217, originated in the House.
___________________________________________
Chief Clerk of the House
___________________________________________
Speaker of the House
Signed this _______________________________day
of____________________________________, 2025.
___________________________________________
President of the Senate
Signed this _______________________________day
of____________________________________, 2025. HOUSE BILL NO. 217
INTRODUCED BY J. FITZPATRICK
AN ACT TRANSFERRING THE STATE BUILDING ENERGY CONSERVATION PROGRAM FROM THE
DEPARTMENT OF ENVIRONMENTAL QUALITY TO THE ARCHITECTURE AND ENGINEERING DIVISION
OF THE DEPARTMENT OF ADMINISTRATION; ALLOWING THE DEPARTMENT OF ENVIRONMENTAL
QUALITY TO RETAIN CERTAIN FEDERAL FUNDING; AMENDING SECTIONS 90-4-602, 90-4-605, 90-4-607,
90-4-615, 90-4-616, AND 90-4-617, MCA; AND PROVIDING AN EFFECTIVE DATE.