Gov. Greg Gianforte vetoed a bill to boost private community solar projects across Montana, arguing it gives “vast, unfettered discretion” to the Public Service Commission to determine solar credits.
“While I appreciate the sponsor’s commitment to expanding energy production and his good intention with Senate Bill 188, the bill’s lack of guidance to and guardrails on the PSC gives me great pause,” said Gianforte, a Republican, in his veto letter.
Sponsored by Sen. Christopher Pope, D-Bozeman, SB 188 passed with significant bipartisan support, although Pope said Thursday he wasn’t immediately clear if it would be up for an automatic veto override poll.
However, he said he believes the governor had been “ill advised” on the bill, which offered the opportunity to lower the cost of power, reports the Daily Montanan.
“It’s just really unfortunate,” Pope said. “This should have been a straight line, and it should have been an easy consideration, and a lot of Montanans would have benefited.”
The bill would have allowed multiple households or businesses to share one solar array.
It created a framework for developers, such as private parties or municipalities, to build a solar facility that generates from 50 kilowatts to five megawatts. They’d be then allowed to sell the electricity to subscribers within a service area and the subscribers would receive a bill credit for their share of the project.
In his June 13 veto letter, however, Gianforte said the bill departs from a strategy of “unleashing innovation” in energy. He said it mandates public utilities connect with the solar projects and assign credits — with rules adopted by the Montana Public Service Commission.
“It is impossible to predict how the PSC will proceed with implementing Senate Bill 188,” Gianforte said. “Without clear statutory guidelines and guardrails, current and future PSC members could allow excessive credit rates, which consequently would impose unreasonable costs on ratepayers.”
Pope said he and other bill supporters are “extremely disappointed” the legislation got as far as it did without getting across the finish line, mainly because it “has so many opportunities to improve the Montana economy” and “create quality jobs.”
He also said it would have provided a potentially less expensive way to produce electricity over the long term.
The bill was not expected to cost the state any money.
“It’s very much supported by people across the state who are excited about the environmental stewardship that solar energy provides,” Pope said.
But he said the bill drew support from a diverse coalition.
It included an advocate from the American Legislative Exchange Council, or ALEC, a conservative lobbying group, who Pope said had an interest in the energy independence and consumer protection the legislation offered.
He said Big Sky Resort supported it, as did environmental groups and the mayors of Billings, Bozeman and Missoula.
He estimated it received 180 letters of support from the business community expressing an interest in investing in the Montana energy economy through the bill.
“It restored my hope that someday we’ll get back to a place where people of all different walks of life and points of view can find common ground and move ahead in a way that does no harm,” Pope said.
He also said NorthWestern Energy and Montana-Dakota Utilities testified against the bill at numerous public hearings.
“They have a right to support or not support things that would be in their interests, but they are routinely unable to put more modern approaches to energy generation and also consumer economics and other things into their playbook,” Pope said. “And it’s disappointing.”
In a statement, Northern Plains Resource Council member Scott Sweeney said the bill could have provided needed financial relief to Montana ratepayers.
He said Montanans are experiencing tough economic challenges, especially as NorthWestern Energy continues to raise rates, recently in advance of approval by the PSC.
“Gov. Gianforte is clearly out of touch, and this veto puts the interests of wealthy, corporate energy executives above the needs of Montana’s families, small business owners, farmers, and ranchers,” said Sweeney, also retired general manager of Fergus Electric Cooperative.
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