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AN ACT REVISING THE DISTRIBUTION OF FUNDS FOR THE REMEDIATION OF ABANDONED METAL
MINES; REQUIRING A BIENNIAL TRANSFER FOR MAINTENANCE AND WATER TREATMENT AT THE CR
KENDALL MINE RECLAMATION SITE; EXTENDING THE STATE CONTRIBUTION FOR CLEANUP,
OPERATION, AND MAINTENANCE AT THE LIBBY ASBESTOS SUPERFUND SITE; AMENDING SECTIONS
75-10-704 AND 75-10-743, MCA; AMENDING SECTION 5, CHAPTER 387, LAWS OF 2015; AND
PROVIDING AN EFFECTIVE DATE AND A TERMINATION DATE.”
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 75-10-704, MCA, is amended to read:
"75-10-704. (1) Subject to legislative fund transfers, there is
in the state special revenue fund an environmental quality protection fund to be administered as a revolving
fund by the department. The department is authorized to expend amounts from the fund necessary to carry out
the purposes of this part.
(2) The fund may be used by the department only to carry out the provisions of this part and for
remedial actions taken by the department pursuant to this part in response to a release of hazardous or
deleterious substances.
(3) The department shall:
(a) except as provided in subsection (7), establish and implement a system, including the
preparation of a priority list, for prioritizing sites for remedial action based on potential effects on human health
and the environment; and
(b) investigate, negotiate, and take legal action, as appropriate, to identify liable persons, to obtain
the participation and financial contribution of liable persons for the remedial action, to achieve remedial action,
and to recover costs and damages incurred by the state. ****
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(4) There must be deposited in the fund:
(a) all penalties, forfeited financial assurance, natural resource damages, and remedial action
costs recovered pursuant to 75-10-715;
(b) all administrative penalties assessed pursuant to 75-10-714 and all civil penalties assessed
pursuant to 75-10-711(5);
(c) funds allocated to the fund by the legislature;
(d) proceeds from the resource indemnity and ground water assessment tax as authorized by 15-
38-106;
(e) funds received from the interest income of the resource indemnity trust fund pursuant to 15-38-
202;
(f) funds received from the interest income of the fund;
(g) funds received from settlements pursuant to 75-10-719(7);
(h) funds received from the interest paid pursuant to 75-10-722;
(i) costs recovered pursuant to 75-8-106(7) and penalties recovered pursuant to 75-8-109; and
(j) funds transferred from the orphan share account pursuant to 75-10-743(10). The full amount of
these funds must be dedicated each fiscal year as follows:
(i) 50% to the state's contribution for cleanup and long-term operation and maintenance costs at
the Libby asbestos superfund site and allocated pursuant to 75-10-1603 and 75-10-1604; and
(ii) (A) except for the amount provided in subsection (4)(j)(ii)(B), 50% to metal mine reclamation
projects at abandoned mine sites, as provided in 82-4-371. This subsection (4)(j)(ii) does not apply to
exploration or mining work performed after March 9, 1971, except as provided in subsection (4)(j)(ii)(B).
Projects funded under this subsection (4)(j)(ii) are not subject to the requirements of Title 75, chapter 10, part 7.
(B) $500,000 a year through June 30, 2038, for long-term maintenance and water treatment at the
CR Kendall mine reclamation site. This transfer must be completed before initiating the transfer provided in
subsection (4)(j)(ii)(A).
(5) Whenever a legislative appropriation is insufficient to carry out the provisions of this part and
additional money remains in the fund, the department shall seek additional authority to spend money from the
fund through the budget amendment process provided for in Title 17, chapter 7, part 4. ****
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(6) Whenever the amount of money in the fund is insufficient to carry out remedial action, the
department may apply to the governor for a grant from the environmental contingency account established
pursuant to 75-1-1101.
(7) (a) There is established a state special revenue account for all funds donated or granted from
private parties to remediate a specific release at a specific facility. There must be deposited into the account the
interest income earned on the account. A person is not liable under 75-10-715 solely as a result of contributing
to this account.
(b) Funds donated or granted for a specific project pursuant to this subsection (7) must be
accumulated in the fund until the balance of the donated or granted funds is sufficient, as determined by the
department, to remediate the facility pursuant to the requirements of 75-10-721 for which the funds are
donated.
(c) If the balance of the fund created in this subsection (7), as determined by the department
pursuant to the requirements of 75-10-721, is not sufficient to remediate the facility within 1 year from the date
of the initial contribution, all donated or granted funds, including any interest on those donated or granted funds,
must be returned to the grantor.
(d) If the balance for a specific project is determined by the department to be sufficient to
remediate the facility pursuant to the requirements of 75-10-721, the department shall give that site high priority
for remedial action, using the funds donated under this subsection (7).
(e) This subsection (7) is not intended to delay, to interfere with, or to diminish the authority or
actions of the department to investigate, negotiate, and take legal action, as appropriate, to identify liable
persons, to obtain the participation and financial contribution of liable persons for the remedial action, to
achieve remedial action, and to recover costs and damages incurred by the state.
(f) The department shall expend the funds in a manner that maximizes the application of the funds
to physically remediating the specific release.
(8) (a) A person may donate in-kind services to remediate a specific release at a specific facility
pursuant to subsection (7). A person who donates in-kind services is not liable under 75-10-715 solely as a
result of the contribution of in-kind services.
(b) A person who donates in-kind services with respect to remediating a specific release at a ****
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specific facility is not liable under this part to any person for injuries, costs, damages, expenses, or other liability
that results from the release or threatened release, including but not limited to claims for indemnification or
contribution and claims by third parties for death, personal injury, illness, loss of or damage to property, or
economic loss.
(c) Immunity from liability, pursuant to subsection (8)(b), does not apply in the case of a release
that is caused by conduct of the entity providing in-kind services that is negligent or grossly negligent or that
constitutes intentional misconduct.
(d) When a person is liable under 75-10-715 for costs or damages incurred as a result of a release
or threatened release of a hazardous or deleterious substance, the person may not avoid that liability or
responsibility under 75-10-711 by subsequent donations of money or in-kind services under the provisions of
subsection (7) and this subsection (8).
(e) Any donated in-kind services that are employed as part of a remedial action pursuant to this
subsection (8) must be approved by the department as appropriate remedial action. (Subsection (4)(j)
terminates June 30, 2027 2038--sec. 5, Ch. 387, L. 2015.)"
Section 2. Section 75-10-743, MCA, is amended to read:
"75-10-743.
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), (10), and (11), must be used to reimburse remedial
action costs claimed pursuant to 75-10-742 through 75-10-751, to provide funding for the department of justice
for investigations pursuant to its natural resource damage program, to pay costs incurred by the department in
defending the orphan share, and to pay remedial action costs incurred by the department pursuant to
subsection (12). Any amounts provided for investigations must be returned to the account, with interest, from
the settlement proceeds of a claim made under the natural resource damage program within 30 days of
receiving settlement proceeds.
(2) There must be deposited in the orphan share account:
(a) all penalties assessed pursuant to 75-10-750(12); ****
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(b) funds received from the distribution of oil and natural gas production taxes pursuant to 15-36-
331;
(c) unencumbered funds remaining in the abandoned mines state special revenue account;
(d) interest income on the account;
(e) funds received from settlements pursuant to 75-10-719(7); and
(f) funds received from reimbursement of the department's orphan share defense costs pursuant
to subsection (6).
(3) If the orphan share account contains sufficient money, valid claims must be reimbursed
subsequently in the order in which they were received by the department. If the orphan share account does not
contain sufficient money to reimburse claims for completed remedial actions, a reimbursement may not be
made and the orphan share account, 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
account does not contain sufficient money to reimburse claims, and interest may not accrue on outstanding
claims.
(4) Except as provided in subsections (6) and (7), claims may not be submitted and remedial
action costs may not be reimbursed from the orphan share account until all remedial actions, except for
operation and maintenance, are completed at a facility.
(5) Except as provided in subsection (6), reimbursement from the orphan share account 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 account 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 account, the department's costs incurred in
defending the orphan share must be paid from the orphan share account in proportion to the share of liability
allocated to the orphan share.
(ii) If sufficient funds are not available in the orphan share account, persons participating in the ****
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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 account 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 account and must be reimbursed as provided in subsection (3). The agency may submit a claim before or
after remedial action is complete. 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.
(7) (a) 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.
(b) The department may reimburse claims from a lead liable person upon completion and
department approval of a report evaluating the nature and extent of contamination and a report formulating and
evaluating final remediation alternatives. This early reimbursement is limited to those eligible costs incurred by
the lead liable person for the preparation of the reports.
(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 account 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) (a) For the biennium beginning July 1, 2005, up to $1.25 million may be used by the ****
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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 (9)(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.
(10) (a) The After making the biennial deposit required in 75-10-704(4)(j)(ii)(A) and if sufficient funds
remain, 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 (10)(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 (10)(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 (10)(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.
(c) After July 1, 2018, the department shall transfer $1.2 million in each fiscal year from the orphan
share state special revenue account to the environmental quality protection fund provided in 75-10-704.
(11) The orphan share account is subject to legislative fund transfers.
(12) Except as provided in subsection (13), the department may use the orphan share account to:
(a) take remedial action at a facility where there has been a release or there is a substantial threat ****
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of a release into the environment that may present an imminent and substantial endangerment to the public
health, safety, or welfare or to the environment and there is no readily apparent person who is financially viable
and potentially liable under 75-10-715 to conduct the remedial action; or
(b) fund the administration of data collection, the monitoring of the performance of remedial action,
and the initial assessment of a facility to determine whether that facility may be closed or delisted.
(13) The department may not use for data collection, initial assessments, or monitoring pursuant to
subsection (12)(b) more than 20% of the funds appropriated from the orphan share account for the bienniums
beginning July 1, 2015, and ending June 30, 2025. For the bienniums beginning July 1, 2025, no more than
15% of the funds appropriated from the orphan share account may be used for data collection, initial
assessments, or monitoring pursuant to subsection (12)(b).
(14) The department shall report annually to the environmental quality council in accordance with 5-
11-210 the amount of funds from the orphan share account used pursuant to subsection (12), the type of
expenditures made, and the identity and location of facilities addressed. (Subsection (10)(c) terminates June
30, 2027 2038--sec. 5, Ch. 387, L. 2015.)"
Section 3. Section 5, Chapter 387, Laws of 2015, is amended to read:
"Section 5. [This act] terminates June 30, 2027 2038."
Section 4.
were incurred, or proceedings that were begun before [the effective date of this act].
Section 5. [This act] is effective July 1, 2025.
Section 6. [This act] terminates June 30, 2038.
- END - I hereby certify that the within bill,
HB 58, 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. 58
INTRODUCED BY J. SCHILLINGER
BY REQUEST OF THE DEPARTMENT OF ENVIRONMENTAL QUALITY
AN ACT REVISING THE DISTRIBUTION OF FUNDS FOR THE REMEDIATION OF ABANDONED METAL
MINES; REQUIRING A BIENNIAL TRANSFER FOR MAINTENANCE AND WATER TREATMENT AT THE CR
KENDALL MINE RECLAMATION SITE; EXTENDING THE STATE CONTRIBUTION FOR CLEANUP,
OPERATION, AND MAINTENANCE AT THE LIBBY ASBESTOS SUPERFUND SITE; AMENDING SECTIONS
75-10-704 AND 75-10-743, MCA; AMENDING SECTION 5, CHAPTER 387, LAWS OF 2015; AND PROVIDING
AN EFFECTIVE DATE AND A TERMINATION DATE.